Nottingham Forest's battle to stay in the Premier League during the 2023/24 season got a lot harder in March as they were deducted four points for breaching the Premier League’s profitability and sustainability rules (PSR).
They are the second team in thePremier League to suffer a points deduction this season after Everton were docked 10 points in November 2023. That was later reduced to six points.
Having been deducted the four points on March 18, Forest have seven days from that date to notify whether they intend to appeal against the ruling. Losing four points has dropped Forest into the relegation zone.
Here are all the details on what Forest did wrong, and what the next steps are for both the club and the Premier League.
It first became clear that Nottingham Forest could be in some financial trouble in January 2024, when they were referred to an independent commission for reporting losses that exceeded the allowed amount over the three-year reporting cycle ending in the 2022-23 season.
The Premier League statement announcing the points deduction explained: «Nottingham Forest was referred to an independent commission on January 15, following an admission by the club that it had breached the relevant PSR threshold of £61m by £34.5m.»
PSR is what replaced Financial Fair Play for Premier League clubs and the rules are in place to stop clubs recording huge losses that make them unsustainable. Typically, clubs are allowed maximum losses of £105m over a three-year rolling period. The limit is actually only £15m but can be stretched to £105m if the club's owners are in a position and willing to cover £90m. This extra investment can only come in the form of owners expanding their portfolio of shares in the club rather than simply
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